The Bulgarian Stock Exchange (BSE) bounced off an enduring lull with seven of the past 10 bourse sessions ending in the green. Turnovers regularly hovered around the 10 million leva mark as both foreign institutional investors and local retail investors ventured on a return to the trading floor.

The past week also saw speculative shares re-emerging, which is also interpreted as another sign of recovery.

Infrastructure companies led the gains with the shares of Holding Putishta, the company controlled by businessman Vassil Bozhkov, adding 54 per cent since May 8. Moststroy, another firm in the portfolio of the same businessman, went on an even steeper upturn with a 70 per cent increase. Just as high is the hike of Trace Group, which staged its IPO in the past couple of months. Interest in infrastructure firms came after it emerged that they’d likely absorb the lion’s share of the budget surplus this year.

Companies with higher market capitalisation also enjoyed a ride north. Equity of dye-manufacturing company Orgachim and Lead Zinc Complex added 4.9 per cent and 3.9 per cent, respectively, to 399.47 leva and 46.34 leva. As did Synergon Holding, whose shares edged 5.48 per cent to 9.82 leva in May 20 morning trade.

Busy trade with the most heavily capitalised items also pulled the main indices. Sofix, the index of the most actively traded shares on the bourse, regained 10 per cent of its turn-of-the-year valuation after losing during 30 per cent the same period.

In morning trade on May 20, Sofix was at 1266.21 points in what was a daily uptick of 0.81 per cent. The broader BG40 added 0.95 per cent to 352.31 points. BGTR30 added 0.7 per cent to 839.50 points, whereas BGREIT was up 0.21 per cent to 95.36 points.

Analysts agreed that the bourse surge was not so much attributable to the return of international investors as to the intensifying activity of local small and institutional traders.

The comeback of local investors also resulted from the waning effect of the disappointing quarterly results of public companies rather than bullish sentiments, according to analysts. As did from the stoppage of the selling streak, prompted by the panic the months-long bourse downturn caused.

Exposure of local players also came across the board, unlike foreign investors, whose interest mainly focused on infrastructure companies’ equity.

Analysts do not expect that large foreign investors are to broaden their position in the short run because Bulgaria’s stock exchange is too illiquid to draw the attention of large funds.

Meanwhile, investment consultancy Elana Trading started a Xetra awareness campaign, intended to familiarise investors with the trading platform. Elana has also put a new programme converting company codes from the existing RTS system to the new one.

As of June, Elana’s investment centres will distribute free of charge a booklet mentioning the novelties to be introduced by Xetra.

Xetra, due for launch on June 16, will allow for a more diversified range of transactions, whereas shares of Bulgarian companies would be available for trade to financial houses and brokers in several European states.